Stories
Anand Rathi AMC's Neeraj Gaurh Predicts Strong Earnings Growth in Financials and Industrials
- •September-quarter Nifty 50 earnings are projected to post robust growth of 23 percent to 25 percent, anchored by financials, metals, oil and gas, and telecom.
- •Earnings upgrades are expected to concentrate in financials, industrials, and capital goods, while airlines and cement face potential downgrade risks.
- •Portfolio positioning favors overweight exposure in financial services, manufacturing, and discretionary consumption, while remaining cautious on real estate and IT services.
- •The current market environment is seen as an earnings-led market driven by strong double-digit growth rather than liquidity.
- •The domestic economy is well-positioned to withstand a repo rate of 6 percent by the end of FY27 due to robust momentum and de-leveraged corporate balance sheets.
Key Questions Answered
September-quarter earnings are anticipated to show robust growth with Nifty 50 earnings up 23 to 25 percent. Earnings upgrades are likely to be concentrated in financials, industrials, and capital goods, while downgrade risks are expected in airlines and cement.
Anand Rathi AMC prioritizes overweight exposure across financial services, manufacturing, and discretionary consumption. Private banks and financial services are favored due to high earnings visibility and strong credit growth, whereas caution is advised on real estate and broad IT services.
The current market is earnings-led rather than liquidity-driven, with double-digit growth remaining intact. Short-term pressure from global bond yields and geopolitical headlines can be treated as an opportunity by focusing on companies with solid fundamentals tracking low-teens earnings growth.
